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"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Saturday, August 27, 2011

Nobel economists say euro zone will survive

Nobel economists say euro zone will survive
Reuters
With markets on edge over the huge debt mountains that built up in Europe and the United States during the global financial crisis, 17 economics Nobel Prize winners gathered this week on the picturesque island of Lindau on Lake Constance in southern ...

Das: Major Financial Crisis Lurks
Moneynews
By Forrest Jones A major financial crisis is lurking just around the corner for the global economy now that the European debt crisis has taken a turn for the worse, says Satyait Das, author of "Extreme Money: Masters of the Universe and the Cult of ...

Fed's moves to aid economy since financial crisis
The Associated Press
The Federal Reserve has taken many unprecedented steps in the past three years to try to boost the economy and counter the effects of a financial crisis that triggered a painful recession. It's kept the short-term interest rate it controls at a record ...

MONEY MARKETS-Stabilise but bank credit risk reflects strains
Reuters
But that is well below the near 200 bps seen at the height of the financial crisis and further widening is likely to be limited with the European Central Bank still providing unlimited liquidity to banks. Thedollar equivalent has doubled to around 27 ...

Financial Crisis “Speeding Up” Yuan Liberalization
Wall Street Journal (blog)
Apart from prompting bankers to move to more fertile fields in Asia, the financial crisis in Europe and the US is having another important effect, says Mr. Hung – it's expediting the process of the liberalization of the Chinese yuan. ...

German Left Party flounders amid financial crisis
The Associated Press
BERLIN (AP) — These should be promising times for Germany's Left Party: a stubborn financial crisis, an unpopular center-right government, and upcoming regional elections in two longtime strongholds. Instead, an effusive birthday message to Cuba's ...

Time for a new European politics of solidarity
Deutsche Welle
As the financial crisis continues to unfold, the most blatant common characteristic is the failure of Europe's leaders to find an adequate response to tackle the problem, says Abraham Newman. Abraham Newman is Associate Professor in the Edmund Walsh ...

Can Ireland's Growth Defy Keynesian Wisdom?
Wall Street Journal
Between the start of the euro in 1999 and the eve of the global financial crisis at the end of 2007, Irish consumer prices rose considerably faster than in the rest of the euro zone, up 36percent over the period, compared with 22percent for the whole ...

Not Out Of The Woods Yet
Business Insider
BoA could still become the poster child of the next phase of the global financial crisis depending on market uncertainties and ongoing liabilities; or 4. Another faltering European financial institution could trigger the next phase of the financial...

Incredible rise of gold: Is the bubble set to pop?
Arab News
Since the start of this year it is up by more than 50 percent, and since the start of thefinancial crisis gold has risen by 150 percent. While the majority of media focus has been on the recent rise in gold, it has actually been in its current uptrend ...

High Debt Seen Hurting US, Japan, Europe - Paper
Wall Street Journal
In Europe, where concerns about a fiscal crisis are forcing countries such as Italy to make aggressive budget cuts, the picture is mixed. Among the euro zone's three largest economies, Germany is in the best shape with public debt below the danger zone ...

Bank of America: Screaming Bargain Or Just Another Value Trap?
Wall Street Daily
It turns out that five-year credit default swap (CDS) prices are closing in on their financial crisishighs of 395 basis points. Now, if we only looked at the stock chart and the CDS chart, it'd be easy to conclude that Bank of America is doomed! ...

Stevens says 'sitting still' is good in turbulent times
ABC Online
MICHAEL JANDA: Well, he says it is not surprising actually of recent events in North Atlantic countries that are struggling after their financial crisis in 2008. He said financial crises tend to lead to very slow and bumpy recoveries. ...

The I-word
Boston Globe
But then came the financial crisis of 2008, and the ensuing slump. And as the economy has continued to stagnate, Rogoff, 58, has become the flag-bearer for an unlikely position: that as we struggle to help the economy find its way out of the darkness, ...

Gravy train on track after crash
Sydney Morning Herald
If you want to highlight a segment of the market that appears to have learnt precious little from the financial crisis, it would be hard to go past the listed property sector. This is the sector that was gutted by the turmoil, bailed out by ...

Fundamental steps to save our economy
Tbo.com
Yes, greedy, amoral financial institutions coupled with seemingly criminal misbehavior by federal mortgage agencies precipitated our current financial crisis, but the stage had been set by other forces, of which I will here speak, because they are even ...

Steve Jobs, Warren Buffett and a 'Neanderthal edge'
Los Angeles Times
He made similar moves during the financial crisis for Goldman Sachs and General Electric… Bank of America shares jumped 9.4% to $7.65, handing Buffett a one-day paper profit of $355 million on just one part of his investment. ...

Spanish Parties Agree on Deficit Cap
Wall Street Journal
A collapse in revenue following the 2008 financial crisis and a large stimulus package drove the budget deficit to a recent peak of 11% of GDP in 2009. It has fallen since then, and is expected to be around 6% of GDP this year.

Gold shining brightly amid uncertainty
TODAYonline
There are concerns that gold equities will again underperform relative to the gold price, as in the October 2008-March 2009 period following the 2008 financial crisis. Since March this year, the ratio of the physical gold price to the HUI gold equity ...

Wonkbook: What Bernanke should say today
Washington Post (blog)
5) The EU is considering issuing joint "Eurobonds," reports Howard Schneider: "Europe's ongoingfinancial crisis is forcing officials to revisit an issue they brushed aside in the heady rush a decade ago to launch the euro as a common currency: how to ...

Brazil public accounts improve, for now
Reuters
"Brazil's fiscal situation is returning to normality after two years of crisis," Maciel said in reference to the 2008/09 financial crisis during which Brazil adopted costly economic stimulus measures. In the 12 months through July, the primary surplus, ...

Greek Refugees Feast on Bulgarian Tax Savings
Bloomberg
Eastern Europe remains at “serious risk” from the financial instability in the euro region and thecontagion risk is the highest in Greece's Balkan neighbors, such as Bulgaria, the EBRD said in a report on July 22. Intex's Komniakidis, who employs 1000 ...

Don't Forget -- We Advised Japan on Policy
TheStreet.com
Since the early 1960s, the corrective fiscal and monetary response to a financial crisis or nascent deflation was to print-and-spend and to repeat until the policy was successful or the country was broke. Politicians, academics and bankers began to ...

Tampa author Harry Dent predicts 'Great Crash' ahead
Tampabay.com
Dent is bracing for an economic crash that will make the financial crisis of 2008 and its aftermath appear tame. Part of the blame falls on banks, politicians and spendthrift consumers who couldn't say no, Dent says. But he also blames the unstoppable ...

Recovering From a Balance-Sheet Recession
New York Times (blog)
The fundamental cause is the drastic breakdown in private-sector demand brought on by the 2008financial crisis that burst the debt-financed housing and spending boom preceding it. This boom displayed all of the features of a major financial crisis in ...

Slow Going: U.S. Economy Grew Just 1.0% in Q2
International Business Times
The bulls argue that although GDP has recorded only a minor rise in the past six months, the expansion remains intact, but barely, and they argue that with the worst of the financial crisis behind the nation, rising exports, better-than-expected ...

How to invest in a scary economy
CNN
The savings rate has shot up from virtually nil before the financial crisis to more than 5% of disposable income. In the long run, that's good. In the present, however, "the economy will be soft for a lengthy period," says Martin Murenbeeld, ...

Jerry Brown unveils jobs plan to spur hiring in California
Los Angeles Times
Since the breakdown of bipartisan budget talks, Brown has been silent about his plans for one or more tax measures on a November 2012 ballot except to say more levies are needed to end the state's decade-long financial crisis.

Bond Insurace: S&P Updates Rating Methodology For Bond Insurers
Seeking Alpha
The opinions of the rating agencies proved worthless during the financial crisis. They were worse than worthless: they were pernicious, enabling massive fraud and misallocation of investment assets. Investors who were looking for low risk investments ...